Woking council apologises for financial failings
BBCWoking Borough Council has officially apologised to residents for "the failings of the past", which led to the financial collapse of the authority.
Councillors met on Wednesday to discuss a public interest report by the auditors Grant Thornton, which looked at historic borrowing and investment decisions leading to debts of £2bn.
The report said accounting practice and systems at the council had been "poor" and that "significant mistakes were made".
Woking declared itself effectively bankrupt in June 2023 and has increased council tax bills as well as making cuts to services.
The council's leader, Ann-Marie Barker, said efforts are being made to work with local groups and make sure people still get help and support if it is needed.
"I very much understand resident anger," she told BBC Radio Surrey.
"I think it’s a nice addition to say that as a council, as a body, and it was unanimously supported, that we do apologise for the failings of the past."
The meeting also heard that commissioners, who have been appointed by the government to help turn around the finances, will consider the position of individuals named in the report and decide whether further action or investigation is necessary.
Joanne Brown from Grant Thornton, who presented the report to councillors, said: "Overall we identified fundamental weaknesses in governance, decision making, scrutiny, risk management…and ultimately to comply with the duty of the council to evidence and achieve best value."
In another report published on Wednesday, the commissioners said the council's debt now stood at £2.1bn and there was "no means" by which the council could repay all the debt from its own resources.
The report said: "Without financial intervention, the spiral of debt will continue, further increasing the costs to the public purse."
With a population of about 104,000 and an overall spending power of £16.9m, Woking's "very significant challenges" were highlighted in the commissioners' third report into the council's finances.
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